Donald Trump’s social media company, Trump Media & Technology Group, has seen its stock price plummet more than 40% over the past month. The decline comes after a weak earnings report and Trump’s return to posting on rival platform X, formerly known as Twitter. Some investors remain optimistic despite the 43% drop in stock price.
Todd Schlanger, an interior designer from West Palm Beach, owns about a thousand shares. He said, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.”
Teri Lynn Roberson, who owns five shares, sees her investment as more of a political statement.
“I did it more as a statement to President Trump and to show support at the time. I wasn’t really looking to make a lot of money,” she said. Trump owns a 65% stake in Truth Social, so the stock’s performance has significant financial implications for him.
An earnings report showed the company lost more than $16 million over a three-month period ending in June. Revenue was about $836,000, down 30% from $1.2 million a year earlier. The market reacted poorly to the earnings report, and the stock price continued to drop after Trump posted on X for the first time in roughly a year.
Trump Media faces tough market response
Michael Rogers, who owns more than 10,000 shares, expressed concerns over the weak earnings but remains confident in the business. “The revenue just isn’t there,” Rogers said.
“That’s something the company has to work on. But I’m in it for the long haul.”
Analysts have described Truth Social’s stock performance as typical of a “meme stock,” where the price fluctuates based on ideological support rather than financial performance. The stock briefly rose following an assassination attempt against Trump in July but has since dropped to about $23 a share from a peak of $66.
Tyler Richey, an analyst at Sevens Report Research, noted that the decline in stock price coincides with Vice President Kamala Harris’s emergence as the Democratic presidential nominee. “The stock has ebbed and flowed with sentiment toward former president Trump,” Richey said. Finance professor Jay Ritter from the University of Florida pointed out the company’s poor financial performance and lack of a clear revenue-generating strategy.
“For a long time, I’ve been saying that the stock will be volatile but that the long-run trend will be down,” Ritter commented. Some investors, like Mitchell Standley, took advantage of the stock’s previous volatility for quick gains. “It was basically just a pump and dump,” Standley said.
“I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.”
Despite the struggles, die-hard supporters of Trump and Truth Social continue to back the stock. For many, it remains a blend of political support and financial hope, even amid turbulent market conditions.
